Fathom Holdings Inc.

Fourth quarter 2025 revenue was $90.6 million, down 1.2% year over year from $91.7 million. Q4 gross profit rose to $7.1 million from $6.7 million, and gross margin improved to 8.1% from 7.2%. GAAP net loss was $6.7 million, or $0.21 per share, versus a net loss of $6.2 million, or $0.29 per share, a year ago; adjusted EBITDA loss improved to $2.6 million from $2.9 million. For full-year 2025, revenue increased 25.4% to $420.5 million from $335.2 million. Gross profit increased 20.8% to $34.2 million from $28.3 million, while gross margin was 8.1% versus 8.4% in 2024. GAAP net loss improved to $20.3 million, or $0.72 per share, from $21.6 million, or $1.07 per share; adjusted EBITDA loss improved to $4 million from $5.7 million. In operations, Q4 transactions were approximately 8,501, down 14.2% year over year, and full-year transactions were approximately 42,405, up 14.6%. The company ended the quarter with $5.7 million of cash and later entered into a $2 million financing arrangement on March 18, 2026. Management did not provide formal revenue or earnings guidance, but said 2026 should benefit from the new fee structure, higher-margin ancillary growth, and expansion of Elevate and START.

Marco Fregenal emphasized that Fathom is trying to improve the business structurally rather than waiting for a housing rebound. He said the company is focused on margin expansion, agent experience, customer experience, and AI-driven technology, and that 2025’s pricing changes and ancillary growth make the model more scalable and more profitable per transaction. He was upbeat about 2026, saying the company expects materially improved financial results with or without a market recovery.

Daniel Weinmann focused on the financial drivers behind the quarter: Q4 revenue of $90.6 million, gross profit of $7.1 million, gross margin of 8.1%, and adjusted EBITDA loss of $2.6 million. He highlighted that full-year revenue rose to $420.5 million, gross profit to $34.2 million, and adjusted EBITDA loss narrowed to $4 million, with improvements driven by My Home Group, ancillary growth, and cost controls. He also noted cash of $5.7 million, no share repurchases in Q4, and a $2 million financing arrangement entered into on March 18, 2026.

In Q&A, Tom Hayes asked for an update on the target for Elevate partners in 2026, and Marco said the goal is about 1,000 agents on the Elevate platform by year-end, versus roughly 260 to 275 currently across Elevate-related offerings. Hayes also asked about agent feedback on Edge, and Marco said the program goes live April 1 for new agents, while existing agents are grandfathered; he said some current agents are already interested because the economics compare favorably with competitors charging 20% to 30% splits. On ByOwner, management said the partnership is already generating leads, is focused on listings and connecting sellers with agents, and should become meaningful in Q2 and beyond.